The Container Store Wows Investors With Positive Comps

By Chris Lange Updated Jan 13, 10:19AM EST · Published Apr 25, 4:29PM EDT

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The Container Store Wows Investors With Positive Comps — © Thinkstock

The Container Store Group Inc. (NYSE: TCS) reported fiscal fourth-quarter financial results after the markets closed on Monday. The company said it had $0.20 in earnings per share (EPS) on $232.1 million in revenue, compared to consensus estimates from Thomson Reuters that called for $0.21 in EPS on $230.53 million in revenue. The same period from the previous year had $0.24 in EPS on $224.26 million in revenue.

Comparable store sales for the quarter were up 0.2% compared to the previous fourth quarter, exceeding the guidance of – 3.0% to – 5.0% comparable store sales growth and marking the third consecutive quarter of positive comparable store sales.

The company expanded its presence by opening 10 new stores extending its reach into seven new markets while expanding two existing markets.

In terms of guidance for the 2016 fiscal year, the company expects to have EPS in the range of $0.20 to $0.30 and revenues in the range of $830 million to $845 million. There are consensus estimates that are calling for $0.20 in EPS on $859.38 million in revenue.
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Kip Tindell, chairman and CEO, commented:

We exceeded our stated expectations on total consolidated fourth quarter sales and delivered earnings in line with our previously provided outlook. From a comparable store sales standpoint we performed much better than we projected for the fourth quarter and importantly, saw improved and positive comparable store sales across non-TCS Closets and non-elfa areas of the store during the last two months of the fiscal quarter. In addition, our TCS Closets initiative was again a key driver of performance, providing a 140 basis point lift to overall comparable store sales.

On the books, cash and equivalents totaled $13.61 million at the end of the quarter compared to $24.99 million in the same period from last year.

Shares of The Container Store closed Monday down 8% at $5.83, with a consensus analyst price target of $6.46 and a 52-week trading range of $3.77 to $21.80. Following the release of the earnings report the stock was initially up 18% at $6.88 in the after-hours trading session.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.